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Trading Global Temperature Changes

21 May

An interesting trading system has been developed by Trade Genius. The system generates trades that would be held over a few days to generate small gains with low risk. The software developed by Trade Genius is  compatible with Tradestation software as well as some other trading platforms.

Beyond the software and philosophy of trading, an interesting spin on the temperature of the planet has “again” shown its face.

In an interview with Bob Kudla of Trade Genius posted on YouTube, he discusses the impact of stock prices associated with food over the coming years. His statements are consistent with the content of a book written by John L. Casey, DARK WINTER. Those statements and conclusions concern a downward trend in global temperatures due to the very high correlation between sunspot activity and global temperatures, in conjunction with the highly consistent pattern of sunspots over time.

SunSpotsvsTemp

The above chart shows a correlation of global temperatures to sunspot activity.

If these predications hold true, there could well be a disruption in the food supplies around the world. You might choose to stock up on canned goods, or perhaps consider a solution written about in one of my previous blogs, Soylent.

 

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LesterLand

16 Oct

There is a political gridlock going on this week on Capitol Hill. One might argue it has been going on for some time. Lawrence Lessig uses a Lesterland analogy to explain how our political officials are elected, while Dylan Radigan fights to get big money out of politics. One thing is very clear : neither party is working to support the average American. They are paid by the largest financial backers in the country, those with the largest financial backing, and the Corporations that hold an ever increasing amount of cash.


The objective of the political figures today is to raise enough cash to get re-elected and to leave office with a much greater personal wealth than they entered office with. The objective is to achieve a bipartisan status quo.

“…they will say that gumming up the works is not part of the problem, it’s part of the solution.”

It is interesting that there is always bipartisan support when it comes to the war on terror, restrictions on civil liberties, and the continuous surveillance of US citizens by the NSA. But when it comes to running the government and developing policies that move the country forward, there can be no agreements.

Option List

9 Oct

Happy Trading!

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Herbert Stein’s Law

3 Oct

The father of Ben Stein, Herbert Stein, wrote that “If something cannot go on forever, it will stop”.


If we look at the distribution of wealth in the US, Stein’s Law is at work. Stein’s law could be used as a way to describe why the “American’s Are Not Getting Fatter” as well, or why Detroit went bust.

And, as the Federal government begins to address raising the National Debt limit in the next couple of weeks, it is very much consistent with Stein’s Law that “it’s not really a ceiling if you continue to raise it.”

What is more important to the average Joe, is what’s going to happen to the stock market, and the economy. As the “U.S. Stock Market Moves Further Away From Reality“, below is a chart of the stock market (SPY) over the last 20 years. It looks like another top could be forming.


If Stein’s Law is working on the debt ceiling, it may be working on the stock market as well.

A Part of the Incarceration Industry in America

23 Sep

One of the more successful businesses in the US, the private prison system is alive and well. This is due in no small part to the close relationship between the government and this private industry group. First let’s start with an image of how many countries in the world have a higher incarceration rate than the “Land of the Free”:

That’s right. The US is the world’s leader in incarceration. The next closest incarceration rate to any country that is not an island nation is Rwanda.

In another measurable in the incarceration world, the US is the only country in the world that incarcerates children for life. You can find an image of all the countries that condemn children to die in prison here.

In order to further the success of this business, below is a graphic of the location of prisons where state governments are committed to finding enough offenders to fill 90% of the available beds:

And in California, the state is working toward not releasing nonviolent drug offenders despite a federal court order. Instead, they are discussing a new alignment between the state’s prison guard union and the private prison corporations that would expand the current incarceration levels.

Also of note, although blacks in the US only make up 30% of the population, they make up 60% of the prison population. A graph of the African-American population in the US has a relationship to the incarceration map above.

This sure looks like a strange form of capitalism, where business failure is not an option. You can find out more about how to invest in this growing business at CCA’s investor page.

Running Out Of New Drugs to Take

28 Aug

In 2012, the US employed around 650,000 people whose total costs were an average of $74,615 to research and develop new drugs. The average cost to develop a new drug is now over $1.2B, if you include the ones that don’t make it to market.


There are fewer and fewer success stories in the development of marketable drugs though. This is driving up the cost of drug development, and consolidating the industry. As Pfizer (NYSE: PFE), GlaxoSmithKline (NYSE:GSK), and Merck (NYSE: MRK) have lucrative patents that are going to expire, other companies like AstraZeneca and Amgen are buying up small companies to fill their developmental shortfalls.

The reality is there are fewer drugs being found that perform better than ones already in existence for most medical ailments. Perhaps a clear example of this is in the area of psychiatric medication.

“…. antidepressants, antipsychotics, hypnotic medications and the like…… each … is filled with “me too” drugs, which are essentially just copies of one another; we have six S.S.R.I. antidepressants that essentially do the same thing, and likewise for the 10 new atypical antipsychotic drugs.”

“After a series of failed clinical trials in which novel antidepressants and antipsychotics did little or no better than placebos, the companies seem to have concluded that developing new psychiatric drugs is too risky and too expensive”

In the case of psychiatric medication, there are those that argue that these are hugely over prescribed as well. And along that line, there’s a site called the ADHD University, suggesting that there’s a place for higher education where the only subject studied is how to diagnose patients as ADHD. This site does come with a warning though, it is for “US Healthcare Professionals Only.”

It was also suggested in Richard Freidman’s New York Times article that an effective psychiatric medication could be found in Ketamine. That’s not hard to understand as Ketamine was developed to replace PCP, commonly known on the streets as “angel dust”, an effective hallucinogen.

We are running out of new drugs to take.

Drop in Dow Industrials Perspective August 15, 2013

16 Aug

The Dow (DJI) dropped today by 225.47, or 1.47%. It is currently up 12.67% for the year. Below is a chart of the DJI on a daily basis for the year.

Consider your timeframe whenever entering a position. Below is the DJI on a weekly timeframe.

Looking at a weekly chart, no action being taken (always) is an option. Entering or adding to positions is also a consideration, as the averages have simply dropped to intermediate moving averages. An exit plan would be appropriate for any additional entries in the event the market continues down.

Also, depending upon your perspective, on both a weekly and a daily timeframe these charts suggest that the market is more likely to go down than up. Re-entering the market when the DJI returns to the slower moving average is perhaps a better bet.

Contact your broker or financial advisor for any decision you may choose to make.

God Bless The Queen!